Trent hits a new high as Q2 beats estimates
Trent scaled a lifetime high on Wednesday and remains a favourite with investors as growth across categories with a differentiated product line helped the company beat an overall slowdown in the sector.
The owner of the 'Westside' and 'Zudio' stores reported sharply superior earnings than estimates for the September quarter, resulting in analysts raising target price for its shares by 24-42%, while retaining their positive view on the company.
The shares have risen 12% after gaining for five consecutive sessions to touch a lifetime high of ₹2,503.3. On Wednesday, the shares closed at ₹2,452.8 on the NSE, up 1.2% from the previous close.
«We believe Trent's overall results in terms of revenue growth are excellent and we expect the strong performance to continue in the coming quarters. The company's focus on store expansion and assortment of refreshments will lead to future growth in all store formats,» Axis Securities said in its report.
Most analysts highlighted that the company's performance is an outlier given the overall slowdown in the discretionary consumption space, while Kotak Institutional Equities said that new concepts being seeded by the company can keep its revenue trajectory «higher for longer».
Shares of Trent are currently trading at around 67-82 times its one-year forward price-to-earnings.
